The federal government is set to increase the Federal Excise Duty (FED) on various imported goods in the upcoming Budget 2025-26.
Ministry of Finance told that this move comes amidst ongoing negotiations with the International Monetary Fund (IMF), which has not yet agreed to proposals for providing relief to the salaried class or the property sector.
Sources indicate that the IMF had requested details on alternative revenue measures to offset any relief, but the Federal Board of Revenue (FBR) has thus far been unable to satisfy the IMF with its proposed solutions.
As a result, the government plans to raise the FED rate on imported furniture, construction materials, and crockery. Additionally, work is underway to eliminate tax exemptions in the next fiscal year’s budget.
The imposition of FED on such high-value imported items aligns with the government’s strategy to generate revenue while potentially discouraging non-essential imports.
